Unlocking Efficiency: The Impact of Procurement Orchestration Tools on Sourcing Deals

Recent insights from The Hackett Group and ORO Labs reveal a significant advantage for companies employing procurement orchestration tools. These organizations are completing sourcing deals an astounding three weeks faster than those that do not utilize such technologies.

Key Findings from the 2026 Procurement Orchestration Study

The study highlights that organizations with established orchestration programs have reduced their source-to-contract cycle time by an impressive 20 days, while top performers have managed to cut it down to just 15 days. This increase in efficiency is not merely about speed; it also signifies a shift towards improved operational effectiveness.

Enhanced Process Efficiency and Cost Reduction

Procurement orchestration tools go beyond mere speed, offering substantial gains in process efficiency and automation. The research indicates a median improvement of 30% in these areas among orchestration users, with top-tier companies reporting advancements of nearly 50%. Additionally, procurement leaders noted that 25% of their overall cost reduction and avoidance stemmed directly from their orchestration initiatives.

Streamlining Cycle Times and Automating Processes

Without orchestration, the average source-to-contract cycle time hovers around 40 days. This figure drops to just 20 days for companies that leverage orchestration, and elite performers achieve this in as little as 15 days. Furthermore, those employing orchestration are 2.9 times more likely to process touchless purchase orders. On average, orchestration led to 43% of purchase orders being touchless, in stark contrast to only 15% without it. The most successful companies reached a remarkable 60% in this metric.

Improved User Experience

The user experience within procurement functions has also seen a notable uplift, with 93% of procurement professionals using orchestration rating their experiences favorably. In contrast, this satisfaction was reported by only 49% of those operating without orchestration utilities.

Enhanced Visibility and Supplier Collaboration

Procurement orchestration not only accelerates processes but also enhances visibility into spending and pricing. The study reveals that 75% of respondents benefitted from better data visibility for both business users and procurement teams. Additionally, 66% reported improved real-time pricing insights, while 59% experienced stronger collaboration with suppliers.

The Future of Procurement Technology

Nikhil Gaur, Director of Strategic Projects and Research Analyst at Spend Matters, remarked, “The procurement orchestration market is the first truly new core procurement technology market we have seen in over a decade.” Traditional solutions like source-to-pay (S2P) have fallen short in addressing many procurement challenges. Orchestration fills some of these gaps while extending the value proposition of procurement software by ensuring quicker implementations and enhanced ROI.

Initially focused on intake management, the procurement orchestration market is poised for further evolution, now encompassing the handling of intake requests as well as the completion of those requests across various systems. The next frontier lies in artificial intelligence as leading software providers aim to deploy agents that enhance efficiency beyond the foundational intake scope.